Binance.US Suspends USD Deposits; Banking partners to suspend dollar payments amid SEC lawsuit

Binance.US announced on Thursday that its banking partners will stop processing its dollar payments starting early next week.

What happened: This news comes just days after the Securities and Exchange Commission (SEC) announced a lawsuit against the company as well as Binance and its CEO, Changpeng Zhao.

The SEC has requested a freeze of Binance.US assets, but has asked the court to approve a temporary restraining order that would allow BinanceUS to continue processing withdrawal requests from customers.

Due to increased regulatory pressure, Binance.US said its banking partners are facing challenges, which have forced the exchange to halt USD deposits and prepare to suspend fiat (USD) withdrawal channels starting June 13, 2023.

"In an effort to protect our customers and our platform, we are suspending USD deposits today and informing our customers that our banking partners are preparing to suspend fiat withdrawal channels ( USD) as of June 13, 2023. We encourage customers to take appropriate action with their USD," Binance's official US handle tweeted.

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Why it matters: The exchange will also start removing USD pairs and limiting trading to stablecoin pairs.

Customers withdrawing USD via wire transfer may experience longer wait times due to high volumes and possible weekend bank closures.

Meanwhile, Binance.US is also suspending trading services for several crypto tokens effective Thursday. The suspension affects a wide range of trading pairs, including over 90 tether pairs, eight Bitcoin BTC/USD pairs and two Binance USD pairs.

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